Bitcoin falls as China calls for crackdown on crypto mining & trading
Bitcoin once again fell back below $40k on Friday as a top Chinese governmental body called for a crackdown on cryptocurrency mining, amplifying regulatory concerns.
BTC prices dropped to $36,800 from $41,700 during U.S. trading hours, erasing a sizable chunk of the corrective bounce from Wednesday’s low of $30,201.
The decline happened after the Chinese government website published a statement summarizing a top-level meeting in which officials called for a crackdown on bitcoin mining and trading activities.
Chinese vice premier, Liu He hosted a meeting of the Financial Stability and Development Committee of the State Council on Friday.
The meeting came on the heels of a warning against crypto trading by three Chinese financial industry associations and an intensifying crackdown on bitcoin mining operations in Inner Mongolia, which is one of the mining hubs in North China.
The market mood has recently soured on concerns that corporates may distance themselves from the cryptocurrency amid a growing chorus about the negative environmental impact of bitcoin mining.
Last week, Elon Musk announced Tesla suspended vehicle purchases with bitcoin, citing environmental concerns and dashing hopes for widespread corporate adoption, which caused huge damage to the price of Bitcoin.
The cryptocurrency has been falling ever since and hit a low of $30,000 on Wednesday, marking a major pullback from record highs above $64,000 registered on April 14.